- Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses.

There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.

Microeconomics is the study of an individual economy, or of the different segments within the larger economy, while macroeconomics is the study of aggregate economic behavior, or the economy as a whole(Madura 103). tags: Economics Essays Free Essays 569 words | (1. 6 pages) | Preview - ‘It’s not the employer who pays the wages.

It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement. If customers are actually the ultimate payers of wages, then more than doubling these wages can only be justified if, in some other way, it generates an equal or superior amount of value (either through a better product, lower costs, or both).